Labor’s election pledge to make household batteries cheaper is a significant step forward in reducing climate pollution and limiting power price rises. The policy aims to cut the cost of a typical household battery by about $4,000, or 30%, by leveraging a long-running small-scale renewable energy scheme that has made rooftop solar panels and hot water systems affordable for many Australians.
While the policy has been criticized by some as a subsidy for the wealthy, it has the potential to benefit everyone who uses the power grid, not just those who can afford to install a battery. The discount is expected to lower annual power bills for households with solar panels by around $1,100 per year, making it easier for them to pay off the cost of the battery.
The policy could also help shift the way the electricity system operates, easing the demand on the grid during peak hours and reducing the reliance on expensive gas-fired generators. This could lead to a cleaner and more sustainable grid, with benefits for both consumers and the planet.
However, there are concerns that the policy does not do enough to address the needs of those who cannot directly benefit from it, such as social housing residents, private renters, and low-income homeowners. Labor has made some efforts to address these shortfalls, including a commitment to upgrade social housing with better insulation, electric appliances, and solar panels.
Overall, Labor’s batteries policy is a significant step forward in addressing climate change and reducing power prices. While it may not be perfect, it has the potential to benefit many Australians and could be a key part of a broader transition to a cleaner and more sustainable energy system.